Goodwill

The changes in the carrying amount of goodwill during the years ended December 31, 2012 and 2011 are as follows (dollars in millions):



	Total
Balance as of January 1, 2011	$	1,427
Goodwill acquired in Global Crossing acquisition	1,110
Effect of foreign currency rate change	4
Balance as of December 31, 2011	2,541
Goodwill adjustments	24
Balance as of December 31, 2012	$	2,565

The Company conducted its annual goodwill impairment analysis at December 31, 2012 and 2011. As a result of the Company's annual assessment, Level 3 concluded that its goodwill was not impaired in 2012 or 2011.